Please provide as much information as you possibly can, I know that you can not write my paper, but as much info as possible would be greatly appreciated. Please use the information you provided previously on McDonald's Corp. to complete the following tasks.
A) Executive Summary
B) Long Term Objectives
C) Strategic Analysis and Choice
D) Plan Goals and Implementation
E) Financial Projections and Analysis
F) Critical Success Factors
G) Controls and Evaluation
Please see the attached file.
McDonald's is the world best known brand name in the fast food industry with over 30,000 stores worldwide. Opened by brothers Dick and Maurice McDonald in 1937, the restaurant has been successful since the start. From a production line of most common food to concentration on burgers, the franchising system of McDonald's works its magic in expanding domestically and internationally. Having a stable partnership with Wal-mart and Disney and a large franchising network, and an improving business strategy, McDonald's works its way to build a sustainable competitive advantage in order to stay on the top of global fast-food industry. McDonald's has become emblematic of globalization, sometimes referred as The Mcdonaldization of society. The Economist magazine uses the "Big Mac index" (the price of a Big Mac) as an informal measure of purchasing power parity among world currencies. (Wikipedia)
McDonald has globalised by way of franchising through out the globe. In achieving low-cost strategy, McDonald's, the leader of fast food industry, uses diversification strategy in its international business, a franchising system that earns the most profit, and a Plan to Win strategy to improve the company's overall performance.
McDonald's starts out with a franchising system, which continues to play a significant role in its business that made up 60 percent or more of McDonald's total sales. After collecting franchising fees, McDonald's continues to receive monthly service fee and property rent as ways to increase its income. Then realizing the value of real estate, McDonald's implements its strategy and raises its income by marketing excess land, property and buildings.
In order to compete with other international fast food restaurants, McDonald's tries to differentiate its products and services corresponding with foreign customers' tastes and needs while continuing expanding in international market. It has got following competitive advantages:
? Committed human resources team with sound processes
? Flexibility and continuous innovation of menu items
? Cost cutting
? Solve problems and seize opportunities more quickly than competitors.
? Efficient supply chain management including global network of production facilities and realizing power in the purchase of goods and services.
As per the above competencies we have set down the long term objective to increase the market share and to grow the revenues by 15% per annum. For this the strategy will be of product differentiation, growth through international expansion and broadening the variety of menu. There will be use of TQM for effective implementation of the strategy and there will be continuous evaluation through balance scorecard system. The major critical success factors are continuous innovation, updated information technology, knowledge management and organizational excellence. With the help of the above strategy we have projected 15% growth in revenues per year for 5 years and 20% growth in profits per year for 5years. Thus we have projected revenues in excess of $40 bn in 2011 from the current $21 bn and the profits at more than $7bn from current $2.87bn.
Long term objectives:
In the business world, we often encounter many differences between the current and future states, which further become a gap. In order to minimize the gap, a company should, therefore, define a company's objectives and goals clearly.
In business terminology, goals are defined as statements that are formulated and lack of specificity while objectives are likely to appear in exact form ("Strategic Planning"). Goals statements compose of five elements: task, what, who, timeframe and deadline (Lukaszewski, 1990)
? To increase the Market share globally in the fast food industry.
? To create high brand awareness and loyalty
? To be a true multinational company.
? To satisfy all the stakeholders of the organization
It will make every effort to ensure that its decisions, recommendations and actions function to satisfy all relevant publics: customer and society at large.
? Ensuring safe distribution
Ensuring safety throughout the supply chain is a vital function of food items
? To undertake more alliances and collaboration in order to raise the competencies of the organization and to broaden the product portfolio of the organization.
Strategic Analysis and Choice
Corporate-level strategies address the entire strategic scope of the enterprise. This is the "big picture" view of the organization and includes deciding in which product or service markets to compete and in which geographic regions to operate. Thus Corporate Strategy is concerned with the overall purpose and scope of the business to meet stakeholder expectations. Critical questions answered by corporate-level strategists thus include:
1. What should be the scope of operations; i.e.; what businesses should the firm be in?
2. How should the firm allocate its resources among existing businesses?
3. What level of diversification should the firm pursue; i.e., which businesses represent the company's future? Are there additional businesses the firm should enter or are there businesses that should be targeted for termination or divestment?
4. How diversified should the corporation's business be? Should we pursue related diversification; i.e., similar products and service markets, or is unrelated diversification
It is useful to examine the competencies that McDonald possesses in its current operations. It has been theorized that companies deliver superior customer value by performing exceptionally well in one or more of three areas, Operational Excellence, Customer Intimacy, and Product Leadership. Based on the environmental analysis, it is relatively easy to theorize that McDonald's primary strengths lie in all three.
1. Continue current horizontal growth strategy of expanding the restaurants throughout the world and also widening the menu
Pro: Uses core competency to expand.
Cons: Need to significantly increase marketing effort and expenses.
2. Follow vertical growth strategy of moving upstream.
Pros: Less reliance on Vendors and better efficient supply chain management
Con: Likely to significantly increase the capital expenditure and may loose focus
3. Investigate merger with other food chain.
Pros: May increase sales and reduce costs in every area.
Con: May loose its focus and profitability.
4. Pause Strategy:
Consolidates various acquisitions to find economies and to encourage innovation among the business ...
This formulates the strategic Plan of McDonalds Corp